We regularly publish thought leadership to help our clients understand the ever-changing industry. With a dedicated team of professionals focused on research, analysis and reporting, we aim at providing you with insightful industry perspectives.
Automotive Industry Outlook
- Automotive Pathway to net-zero
News of disruptive, even historic, climate change has reached into many aspects of societal, political, and economic discussion—and fundamental readjustments seem inevitable across industries. And while the target of “net-zero” is the objective within automotive, the journey depends on the ability of all industries to join forces toward achieving that common goal—and therefore, remains speculative.
- Automotive Pathways to decarbonization
The automotive sector is a cornerstone of mobility systems worldwide, as well as a key pillar of the global economy. However, it is also a major contributor to climate change. In 2020 alone, passenger cars and vans caused 3.5 gigatons of CO2, almost one tenth of global CO2 emissions. This includes tailpipe emissions only, thereby excluding additional emission sources along the value chain such as parts and vehicle production.
- Supplier Ecosystems in the Truck Industry - Creating partner ecosystems is critical for transformation success
The truck business is undergoing radical change and faces pressing challenges: From ongoing consolidation and supply chain shortages related to the pandemic and the war in Ukraine to a large-scale transformation driven by long-term, overarching trends and disruptive innovations. This Point of View Building Supplier Ecosystems in the Truck Industry describes why supplier ecosystems play a decisive role for the future success of the truck industry.
- The Leap from Going Overseas to Globalization: The 2nd Growth Curve for Chinese OEMs
Deloitte recently released The Leap from Going Overseas to Globalization - The 2nd Growth Curve for Chinese OEMs, featuring the globalization direction of Chinese OEMs from three aspects: target markets selection, positioning strategy design, and operating model innovation. Based on previous experience and insights, Deloitte set out the key success factors for OEMs to define their globalization goals and objectives, develop strategies and roadmaps, and achieve sustainable overseas growth.
- Fighting an unprepared battle – Rethinking auto semiconductor strategy in an uncertain era — Semiconductor Industry Series
Deloitte released Semiconductor Industry Series: Fighting an unprepared battle – Rethinking auto semiconductor strategy in an uncertain era. The improvement of underlying technologies are driving transformations in the semiconductor industry, and the rapid development of intelligent vehicles is quietly changing the business and operation models of the automotive industry. The pandemic-induced chip shortage catalyzed the evolution of automotive industry, which also brought unprecedented attention from all players in the ecosystem including governments, industry stakeholders, manufacturers, and even end users. It is particularly critical for OEMs and semiconductor companies, especially local ones, to recognize the need for capability transformations. Going forward, the ability to secure semiconductor supplies to avoid disruptions is a strategic consideration every company should contemplate in the future.
- Software-Defined Vehicles — A Forthcoming Industrial Evolution
Over the past few years, standardized hardware of smartphones and computers gradually reached physical limits, pushing industrial transformation from hardware upgrades to software development. The automotive industry is different from the smartphone and computer industries in terms of hardware standardization and technology. The automotive industry is not ready to replicate the exact development pattern of the smartphone or computer. However, with increasingly standardized hardware and narrowed technical gap, the automotive industry is now likely to go through a similar development process.
- Future of Automotive Sales and Aftersales - Impact of current industry trends on OEM revenues and profits until 2035
The global automotive industry is on the cusp of a monumental transformation. Besides technological trends in the area of connected car, e-mobility, and autonomous driving, we can observe significantly changing customer preferences in terms of mobility usage and buying preferences. Hardly any expert questions these developments, but what was missing from our perspective was a holistic understanding of what these trends really mean to the sales and aftersales business of an established original equipment manufacturer (OEM)–very concretely in terms of revenues and profits.
- Digitalization, Impact the Future: Aftermarket Industry Transformation - 2020 White Paper of China Auto Aftermarket
Auto stock market in China is poised to emerge as the world's largest single market, with both large scale and rapid growth attracting attentions of an increasing number of companies and capital. According to all-round analysis in policy, capital, customers and business logic, Deloitte automotive sector team published Digitalization, Impact the Future: Aftermarket Industry Transformation – 2020 White Paper of China Auto Aftermarket, sharing Deloitte's insights and judgement to the future trend in auto aftermarket industry transformation.
- Handbook for automotive industry business resumption
The Deloitte China automotive team responded quickly at the beginning of February to address the impact of COVID-19, collaborating with Deloitte professionals from various service lines and publishing articles containing analysis and suggestions on how the automotive industry should react to the outbreak. The resulting handbook covers the entire automotive industry value chain, including cash flow, marketing and sales, human capital, supply chain, CSR and digital transformation.
- Fueling the Future of Mobility: Hydrogen and fuel cell solutions for transportation
According to the report, in less than 10 years, it will become cheaper to run a fuel cell electric vehicle (FCEV) than it is to run a battery electric vehicle (BEV) or an internal combustion engine (ICE) commercial vehicle. In addition to looking at the commercial viability of FCEVs, the report also looks at the progress and support from governments around the globe. Also, The report includes a detailed case study of a Chinese logistics provider, one of the largest fuel cell logistics vehicle operators in the world and FCEV case studies on drayage truck operations in California, as well as bus operations in London.
- A NEV revolution in the making How to race ahead in China’s soaring NEV market
The report outlines five major trends and drivers in China’s NEV market. These cover technology choices, product differentiation, retail and network transformation, the competitive landscape, and value chain evolution.
- 2019 Deloitte Global Automotive Consumer Study
As part of Deloitte’s latest Global Automotive Consumer Study, thousands of consumers shared their views on critical issues affecting the automotive sector.
- The Future of the Automotive Value Chain: Supplier industry outlook 2025
This study focuses on possible developments in supplier market volumes, their underlying trends as well as their implications for decision makers. We are bringing valuable support to the table for automotive decision makers to support them in times of great uncertainty.
- The Future of the Automotive Value Chain: 2025 and beyond
In this report, we discussed what the most important drivers of future value chain developments are and how the automotive leaders make investment decisions during the uncertain times, in order to have know-how, production capacity, and stable supply chains in place once markets demand them.
- Accelerating technology disruption in the automotive market: Blockchain in the automotive industry
With an analysis on the value and practical applications of blockchain in the automobile industry, this report explores the blockchain opportunities, and helps shape the understanding so businesses can develop the most appropriate approach.
- 2018 China Domestic Auto Brand White Paper
Through quantitative and qualitative analysis, the report analyses the development of domestic auto brands and the shift in the competitive landscape since China's World Trade Organization entry.
- The Deloitte City Mobility Index
The Index goes beyond present-day transportation issues and looks to the future by offering a comprehensive review of key aspects of mobility in cities around the world.
- Autonomous driving reshapes competition in the ecosystem
In this report, we discussed the potential of autonomous driving in China, and the shift in the competitive landscape.
- Securing the future of mobility: Addressing cyber risk in self-driving cars and beyond
In this report, we take a closer look at the cybersecurity issues that could threaten the future of mobility, and offer perspectives on how these threats should be addressed.
- Progressing through transformation
"Progressing through transformation - study on SOE reform in auto industry" is the 7th publication of SOE reform whitepaper series, and it's the first attempt to look into the impact of SOE reform from the industry perspective. We surveyed top executives from auto SOEs to understand the impact of SOE reform on these companies, and presented several case studies on how to tackle the challenges that may encounter when driving SOE reform.
- 2017 Auto Industry Outbound Investment Report
The report explores the shifting trends in China auto outbound investment, the impact brought by the "One Belt and One Road" initiative, and the future outlook.
- Investment Promotion Report on Railway Industry - Romania and Turkey
The report was jointly published by CIPA and Deloitte China. Building upon the previous year's report which was an overview of China enterprises' overseas investment, the team conducts an in-depth investigation and listens to the suggestions from enterprises, then focuses on two countries alongside the "One Belt and One Road" - Romania and Turkey this year.
- Investment Promotion Report on Auto Industry 2015
The report was jointly issued by CIPA, Deloitte China and Auto Business Review and focuses on the auto aftermarket, new energy vehicles, and smart connected vehicles.
- 2016 Global Manufacturing Competitiveness Index
The results of the 2016 study clearly show the ongoing influence manufacturing has on driving global economies. From its influence on infrastructure development, job creation, and contribution to gross domestic product (GDP) on both an overall and per capita basis, a strong manufacturing sector creates a clear path toward economic prosperity.
- China Automotive Industry Outbound Investment Report 2016
Deloitte looks into past three years' automotive industry outbound investment cases and analyzes the key drivers behind those investments. Then, summarizes the primary challenges that Chinese buyers may encounter and provides the recommendations for China automotive companies who are considering the overseas investments.
- Big Data and Analytics in The Automotive Industry
Big data and analytics today offer previously unthinkable possibilities for tackling these pressures and many other challenges automakers are facing.
- The Future of Mobility: How transportation technology and social trends are creating a new business ecosystem
The report was published by Deloitte Insights. It talks about the future evolution of transportation and mobility. The debate centers on whether the extended automotive industry will evolve incrementally toward some future mobility ecosystem or whether change will occur at a more radical pace and in a highly disruptive manner.
- 2014 Automotive industry investment promotion report
The report is based on information collection and data analysis from various aspects such as macro economy, policy level, industrial dynamics and business operation, is dedicated to providing insights on the trends of China's auto market, predicting industrial movements, analysing what opportunities and challenges the enterprises may encounter during industrial development and change from an innovative and forward-looking perspective.
FCEVs to be cheaper to run than BEVs and ICE vehicles within 10 years
Auto Consumer Study
- The connected automotive purchase experience under a new digital paradigm
A recent consumer survey conducted by Deloitte Consulting has shown that more than 40% of the Chinese consumers are interested in bypassing dealers and consider buying directly from OEMs, in addition, over 40% of Chinese customers regard the seamless integration of O2O touchpoints an important decision factor. Given such trends, auto makers have started to address these new "challenges" and change the way they design their sales models
- Navigating the customer journey: Asia Pacific perspectives from Deloitte’s Global Automotive Consumer Study
As part of a series study on automotive consumer behaviour, this year's study covered a survey on over 22,000 consumers in 17 countries. This article focused on Asia Pacific consumers perspectives on electric vehicles and autonomous driving vehicles, as well as their attitude and experience in purchasing a vehicle, which can help companies prioritize and better position their business strategies and investments.
- What's ahead for fully autonomous driving: Consumer opinions on advanced vehicle technology
In this study, Deloitte surveyed over 22,000 consumers in 17 countries around the
world,and focused on six to explore consumers' attitude towards self-driving technologies, their preference in advanced vehicle technologies and their choice among various mobility services etc.
- Enhance customer intimacy by using smart emotional connection
Deloitte Consulting Strategy and Operations practice recently published an article on customer intimacy in the Harvard Business Review China. The article authored by Dr. Marco Hecker and Dr. Thomas Schiller talks about how to smartly use customer emotional connection to enhance customer intimacy.
- 2014 Global automotive consumer study: The changing nature of mobility
The study is based on a survey of over 23,000 consumers in 19 countries. Three developed countries (United States, Germany, Japan) and three emerging markets (China, India, Brazil) were selected to further analyze and highlight consumer trends and insights.
- The changing nature of mobility: Exploring consumer preferences in China
The research findings will help the automakers, dealers, and the rest of auto companies to understand the changes in the consumer's demand and provide the foundation for their strategic business decisions.
- Automotive Engineering in the Software Era
In the automotive industry, software contributes an ever-increasing amount of value. Yet many OEMs and suppliers still lack important capabilities for tackling the new era’s challenges, and development structures need to be transformed to enable the new software paradigm. In a new study Deloitte identifies the ten most important trends and assesses the industry’s software development readiness.
- China automotive aftermarket logistics service insights
The development potential of automotive aftermarket is being unleashed as China's automotive market matures. Auto accessories business is playing a greater role in the development strategies of automotive OEMs, and is set to become a key segment in future market competition.
- A benchmark research on OEM revenue and cost
Key operational changes within leading Chinese & international automotive OEMs from a financial perspective with a deep dive into the drivers of changes
- Spare parts management (SPM) benchmark survey in China’s automotive industry
Covering 12 major Chinese Auto OEMs aiming at benchmarking and getting a better understanding of the auto vehicle spare parts market in China
- Trends and outlook of the auto electronics industry
An overview of automotive industry policy environment, the current status of auto electronics industry and the development trends of selected sub-segments
- China Automotive Industry Risk Study: Enhance auto dealership's capability to survive in L-shaped economy
This study is designed to understand the current operation and development of auto dealerships in China through an analysis on dealers’ financial and operational data, then further incorporating Deloitte’s survey results on dealer's operational performance.
- 2014 China auto dealership performance study
The study concludes with Deloitte's constructive recommendations to the independent dealers, dealer groups, and OEMs of luxury, main stream and domestic brands on risk management and operation improvement.
- China auto dealer group financing white paper
Deloitte and CITIC jointly published the China Auto Dealer Group Financing White Paper, focusing on analyzing China Auto Dealer Groups' development and financing needs.
- 2013 Deloitte China auto dealership performance study
Results from the 2013 annual survey indicate that, although China’s auto market has rebounded moderately, the overall growth is slowing down and competition is getting fiercer.
- Future of Captives: What will be the core businesses for Automotive Captives in 2030?
The report sheds light on the possible developments and core business in the Captive industry. Our goal is to support our readers and facilitate decision-making in times of great uncertainty, to enable Captives not only to survive, but to come out on top of the disruption lying ahead.
- 2015 China Auto Finance White Paper
The white paper examines the innovative finance products and the emerging auto finance business models in China automotive industry.
- 2014 China auto finance report
A closer look at the innovation of the auto finance industry and explores the development of several major emerging models in China, including car rental/leasing, used car finance, car insurance and Internet finance.
- 2012 China auto finance report
Insights on current development status and outlook of China's auto finance industry